Job cuts: Daimler wants to get rid of more than a thousand executives

2019-11-08T13:08:01.983Z

In mid-November Ola Källenius wanted to announce details of his savings plans, with which he wants to restructure the Daimler Group. The works council leader came to him now.

Slowly it goes at Daimler after the diesel crisis back up, last even profits were reported. This should also be due to the comprehensive austerity measures, with which the new, Swedish CEO Ola Källenius profiled. He also does not stop at his own leadership.

As part of the savings program, Daimler plans to reduce 1100 executive positions worldwide. This is from an information letter of the general works council chief Michael Brecht out to the staff, from which the news agency dpa, the "Handelsblatt" and the "Süddeutsche Zeitung" cite. In Germany, about one in ten management positions would be affected.

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Daimler was recently in a serious crisis. Provisions, recalls, litigation and poor economic activity led to a loss of € 1.6 billion in the second quarter. Added to this was recently a 870-million-euro fine by the Stuttgart public prosecutor in the course of diesel investigations. In October, a new compulsory recall for hundreds of thousands of other cars was added, which are illegal in the view of the authorities with illegal exhaust technology.

Arnulf Hettrich / imago images

Ola Källenius: Personnel costs should be reduced

Källenius has called according to the works council at the beginning of the week at an internal management event for the first time concrete figures on its savings plans. He did not want to call details until mid-November. At least parts of it have already become known through the letter.

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According to the works council, in order to reduce personnel costs, the company management also proposed not to take over any possible pay increases from the collective bargaining plan due in the spring of 2020. Brecht writes: "We have categorically rejected this."

A Daimler spokesman said that one does not comment on speculation. There is a constructive dialogue with the employee representatives.